Infosys acquires US firm's treasury software division

MUMBAI: Infosys Technologies said it had acquired the treasury software unit
of US-based IQ Financial Systems for $3.9 million in a bid to expand its banking
products portfolio and reach new markets.

The all-cash acquisition brings to Infosys' banking products group five of IQ
Financial's clients, including some of the largest commercial and investment
banks of Europe, Japan and the United States, officials told a news conference
on Thursday.

"We see these set of products as an entry vehicle into advanced markets
in the banking product arena," said Merwin Fernandes, head of global sales
and marketing of Infosys' banking business unit.

Unlisted New York-based financial software company IQ Financial Systems is 75
per cent owned by Deutsche Bank. Bangalore-based Infosys is India's
second-largest software services exporter. Infosys has acquired a suite of IQ
Financial Systems' treasury products for processing transactions in derivatives
and cash instruments in the money, foreign exchange and fixed-income markets. It
has also taken over 28 employees from the division.

"Treasury was an important missing link in our current product
portfolio," Fernandes said. Infosys' banking products focus had so far been
in the retail and corporate banking segment and by adding treasury products to
its portfolio, the division would gain access to clients in investment and
wholesale banking as well, he said.

The company's banking business unit, which has nearly 500 employees, posted a
revenue of $21.8 million in the year ended March, up 123 per cent, said Girish
Vaidya, the unit's head. After this acquisition the unit's clientele strength
has risen to 62 banks spread across 19 countries.

Fernandes said Infosys will continue to adopt a build or buy strategy to
expand its banking products business.

(C) Reuters Limited.